EEs of Governmental 457 & 401(a) move to affiliated Tax Exempt 403(b)

[TPAVP]

We have a Governmental Trust Authority that has a 457 with deferrals and loans and a 401(a) with match. The Trust Authority oversees a Tax Exempt Hospital with a 403(b). How do we handle employees moving from one employer to the other? From what I've been told, the Trust Authority appoints the board of trustees for the hospital.

[Carol V. Calhoun]

Typically, you would count service with both entities for eligibility and vesting purposes, but merely allow participation in whichever plan(s) the employee's current employer maintained. So, for example, an employee who moved from the Trust Authority to the hospital would cease to participate in the 457 and 401(a) (although s/he would continue to have a deferred benefit in those plans) and begin participating in the 403(b). At retirement or other distribution event, the employee would have a benefit from all three plans.